Business, international

Election doubt strains Manila's financial markets

Article Abstract:

Legislative elections in the Philippines are causing financial instability as the Philippine Stock Exchange composite falls 1.8% the day after elections. The validity of President Gloria Macapagal Arroyo's government is being put to the test by the pro-Joseph Estrada opposition Force of the Masses coalition, although preliminary exit polls and opinion polls show Arroyo's supporters winning.

Brokers buy out Merrill

Article Abstract:

Five brokers at the Merrill Lynch Manila office are buying the operation after rumors that Merrill would leave the Philippines had them fearing for their jobs. The new company will be called Philippine Equity Partners Securities, and the owners hope that a market rebound will occur soon in the Philippines.

Bank lending grows, hinting at end of credit crunch: December figures suggest days of nonperforming loans are over, but analysts are skeptical

Article Abstract:

The increase in bank lending activity in the Philippines failed to convince investment analysts that the country's financial woes are over. According to Central Bank Gov Gabriel Singson, the 1.5% increase from month to month since Dec 1998 of bank lending activity proves the resolution of the credit crunch in the country. Credit restrictions started during the late 1997. According to Goldman Sachs, the continuous increase in bank lending activity is unlikely since bankers have voiced their plans to segment their lending programs.